Bitcoin Forum

The basic rule of supply and demand states: the higher the amount of a product, the lower the demand for that same product. Assuming we remove 50% of the said supply of a product, there should be at a minimum a 50% increase in the demand for that product. Will this hold true for XRP, when Ripple escrows 55 B XRP this month? I'd like to hear everyone's input. Thanks

It is safe to say that it is a bank's Bitcoin and since banks seek stability for their assets, the same thing they would expect from XRP if they are looking to use it for their transactions settlement. One thing that we should consider that supply is not reducing due to the natural incident but a desperate attempt to boost the demand and price of it for the short term. I believe that it might surge a little after locking 50% of the funds but I don't see any exponential growth in the long run because supply is huge even after locking the funds and XRP transactions (even after considering the expected transactions growth) are not burning enough amount that will reduce the supply down the road.

Personally I think the escrow is already priced-in, so we won't see much price change. IIRC it was announced about 6 months ago.
... But one thing crypto has taught me is that it's very dificult to make accurate predictions, so who knows?